Is National Presto Industries Inc. (NPK) Worthy of Your Portfolio?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Highbridge Capital Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified NPK as a viable investment and initiated a position in the stock.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as National Presto Industries Inc. (NYSE:NPK) but similarly valued. We will take a look at TriCo Bancshares (NASDAQ:TCBK), Green Plains Partners LP (NASDAQ:GPP), Crocs, Inc. (NASDAQ:CROX), and CTS Corporation (NYSE:CTS). All of these stocks’ market caps resemble NPK’s market cap.

As you can see these stocks had an average of seven hedge funds with bullish positions and the average amount invested in these stocks was $56 million. That figure was $81 million in NPK’s case. Crocs, Inc. (NASDAQ:CROX) is the most popular stock in this table. On the other hand CTS Corporation (NYSE:CTS) is the least popular one with only four bullish hedge fund positions. Compared to these stocks National Presto Industries Inc. (NYSE:NPK) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none